Client NPAW in USA Today
In a recent USA Today article discussing the growing frustration around rising streaming prices, our client, NPAW’s Senior VP of Marketing and Partnerships, Catalina Skramstad, shared valuable insights into how consumer behavior is evolving in response to the ongoing trend of “streamflation.”
The streaming revolution, initially touted as a cost-saving alternative to traditional cable, has taken a turn, with many services like Netflix, Disney+, and Hulu significantly increasing their prices. Skramstad notes that “consumer tolerance for price increases varies widely,” with around 30% to 40% of subscribers potentially canceling their subscriptions after a price hike. This data highlights a delicate balancing act for streaming platforms: they must push prices higher to satisfy Wall Street while keeping a close eye on how many users are willing to stay onboard.
As streaming giants continue to experiment with higher fees, ad-supported tiers, and bundled packages, companies like NPAW, a leader in streaming analytics, play a critical role in understanding audience behavior. With comprehensive data analysis, NPAW helps platforms navigate the challenges of subscriber churn and uncover opportunities to improve user retention.
Looking ahead, Skramstad’s analysis reflects a broader industry trend: streaming companies are less concerned about a small percentage of users canceling and more focused on driving long-term revenue through strategies like bundling and pushing ad-supported options. These tactics aim to maximize profits, even if it means charging higher fees for uninterrupted, ad-free content. According to Skramstad, this is the “new status quo” in the streaming world.
As we enter a new phase of streaming, where consumers face fewer shows, more ads, and higher prices, NPAW’s insights will remain vital for platforms looking to adapt to ever-changing consumer expectations. The rise of bundles and ad-supported tiers, along with a push to retain subscribers, is reshaping the landscape, ensuring that analytics and data-driven strategies are more essential than ever.
